Boost to share ownership in Germany
In response to a widening gap between rising corporate profits and employee wages, the German government is to promote employee share schemes, giving workers a larger proportion of their company's profits.
According to Peer Steinbrück, finance minister, the government is talking to several banks with a view to creating a series of sector-specific funds of shares in non-listed companies which will provide opportunities for equity participation by employees. The funds will help private businesses to channel employee savings into share ownership while ensuring that the investments are protected against possible insolvency.
As much as EUR 230 million a year will be assigned as tax incentives for the new employee share ownership funds. The plan has yet to be passed by parliament.
The RM2 Partnership can offer advice and contacts on the creation and administration of employee share schemes in Germany. For further information call us free on 020 8949 5522.